US retailers gear up for Chinese shoppers

With reports saying that the numbers of Chinese tourists to the US will triple in the next few years, travel agencies and high-end stores in the US are getting ready to offer more products and services catering to the growing market.

"We see the next 10 years as a golden period for US tourism with the increasing volume of visitors from China," said Allen Tang, general manager of New York City-based E-world Travels and Tours.

"The trend is very clear," Tang said. "Five years ago, only about 50 percent of our customers were from China; now it's about 80 percent. We expect the number to be 90 percent in the next few years."

John Capizzi, vice-president and general manager of Manhattan luxury department store Bergdorf Goodman, also said they have noticed an increase in the number of Chinese customers.

The volume of Chinese visitors is expected to grow from 1.8 million in 2012 to a forecasted 4.7 million in 2018, which will make China the country with the largest percentage growth (219 percent) among all countries of origin to the US, according to the US National Travel and Tourism Office's 2013Fall Travel Forecast released last Thursday.

The total volume growth of international travelers to the US is expected to be 26 percent over the six-year period from 66.7 million in 2012 to 83.9 million in 2018, with China contributing almost one fifth of the increase.

With the New Year's Day and the Chinese New Year on Jan 31 approaching, the volume of Chinese visitors is expected to peak for the year. "It's very expensive to travel around this time, so those who still come and visit tend to have more buying power," said Tang.

To attract these tourists, high-end US department stores are starting to offer Chinese-style events, special products and Chinese-speaking salespeople.

Bergdorf Goodman, which started celebrating Chinese New Year in 2012 with the Year of the Dragon, has made numerous plans for the coming Year of the Horse, including Chinese greeters with Mandarin nametags and a comprehensive knowledge of the store to welcome and assist customers.

It will also distribute traditional red envelopes and decorate their windows in the theme of the Year of the Horse from Jan 13 to Feb 3. To make buying easier, the store will offer gift cards to people using a China UnionPay debit card.

Some of the services targeting Chinese customers will continue after the Chinese New Year.

"There are a few programs that we developed specifically for Chinese customers, including a Chinese landing page, translated directories, Mandarin-speaking hospitality ambassadors, social media activities and contests," Capizzi said.

For travel agencies, in opportunity lurks challenge. According to E-world's Tang, higher incomes and improved English skills are key reasons for the growing number of Chinese travelers to the US, but it also means these visitors can be more likely to opt for independent travel experiences.

"Many travelers from first-tier cities such as Beijing, Shanghai or other coastline cities, have already come to the States before, and nowadays more Chinese people can speak fluent English. These people are probably less likely to book a guided group tour with us," said Tang.

In order to adapt to this transition, the agency is targeting second- or third-tier cities in China. It also plans to offer more in-depth tours and flexible services targeting independent travelers, such as car rentals and personal guides.

"It will not be like the past when Chinese people want to see as much as possible in a super short period of time, as it was really hard to come to the States," said Tang. "Nowadays it is easier for them to visit here and now that they have more buying power, they want more freedom and time to enjoy themselves."

Zhang Yang contributed to this story and can be reached at yangzhang@chinadailyusa.com